Australian Dollar Recovers After RBA Rate Decision

The Australian dollar recovered from its early lows against the other major currencies in the Asian session on Tuesday after the Reserve Bank of Australia maintained its key interest rate for the fifth straight meeting.

The policy board governed by Glenn Stevens decided to leave the cash rate at a record low 2.00 percent, in line with expectations. The bank had lowered the rates by 25 basis points each in February and May.

The Australian dollar rose to 2-week highs of 0.7121 against the U.S. dollar and 85.78 against the yen, from early lows of 0.7066 and 85.09, respectively.

Against the euro, the aussie advanced to nearly a 2-week high of 1.5705 from an early low of 1.5833.

Moving away from an early near 4-week low of 0.9245 against the Canadian dollar, the aussie climbed to a 4-day high of 0.9312.

The aussie edged up to 1.0950 against the NZ dollar, from an early low of 1.0879.

If the aussie extends its uptrend, it is likely to find resistance around 0.72 against the greenback, 88.00 against the yen, 1.54 against the euro, 0.94 against the loonie and 1.11 against the kiwi.